Investment Thesis

–          Sea container transportation industry is being in uptrend cycle, freight rate has surged due to high demand;

–          2 new investments in Hai An West and Hai An East at attractive price, which help to improve capacity during shortage of supply

–          Containerization is trending in Vietnam and over the world;

–          Stable income from port operation, thanks to HAH container fleet;

–          Positive expectation from modifying Circular 54/2018/TT-BGTVT in 2021, which increase the stevedoring charge for all port, both domestic cargo and international cargo;

–          Strong raising in container vessel price and charter rate in 2021;

–          Shortage of capacity not yet be solved in near future, which is expected to keep freight rate staying high level;

–          Vietnam international trade benefit from the recovery of target market such as China, The US, Europe.

Risk

–          Increasing oil price is the most important risk, which impact negatively on the earning.

Recommendation

After Q1/2021 result was annouced, we raise target price to 35,100 VND per share to reflect the fact mentioned above.